Determinants of Capital Structure: Evidence from the Global Renewable Energy Sector
(2015) BUSN89 20151Department of Business Administration
- Abstract
- The main purpose of this master thesis is to determine the factors that significantly influence the capital structure decisions in the global renewable energy sector during the period 2005-2013.This study is implemented through a quantitative approach, using a panel data model, in which leverage is the dependent variable, controlled by a set of firm-specific, industry-specific, tax-related and macroeconomic independent variables.
Our regression analysis reveals that the determinants which are positively and significantly correlated with leverage are size,tangibility and median industry leverage. We find that profitability,market-to-book assets, SG&A expenses to revenues, dividends to assets, listed firms dummy and common law dummy are in... (More) - The main purpose of this master thesis is to determine the factors that significantly influence the capital structure decisions in the global renewable energy sector during the period 2005-2013.This study is implemented through a quantitative approach, using a panel data model, in which leverage is the dependent variable, controlled by a set of firm-specific, industry-specific, tax-related and macroeconomic independent variables.
Our regression analysis reveals that the determinants which are positively and significantly correlated with leverage are size,tangibility and median industry leverage. We find that profitability,market-to-book assets, SG&A expenses to revenues, dividends to assets, listed firms dummy and common law dummy are in negative and significant relation with leverage. Overall, the global financial crisis did not have a strong impact on the majority of determinants affecting capital structure decisions in the studied sector. Our results are consistent with the framework of the dynamic trade-off theory. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/7442849
- author
- Mitreva, Eliza LU and Georgiev, Biser LU
- supervisor
- organization
- course
- BUSN89 20151
- year
- 2015
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- pecking order theory, trade-off theory, leverage, renewable energy companies, Capital structure determinants
- language
- English
- id
- 7442849
- date added to LUP
- 2015-06-29 13:37:01
- date last changed
- 2015-06-29 13:37:01
@misc{7442849,
abstract = {{The main purpose of this master thesis is to determine the factors that significantly influence the capital structure decisions in the global renewable energy sector during the period 2005-2013.This study is implemented through a quantitative approach, using a panel data model, in which leverage is the dependent variable, controlled by a set of firm-specific, industry-specific, tax-related and macroeconomic independent variables.
Our regression analysis reveals that the determinants which are positively and significantly correlated with leverage are size,tangibility and median industry leverage. We find that profitability,market-to-book assets, SG&A expenses to revenues, dividends to assets, listed firms dummy and common law dummy are in negative and significant relation with leverage. Overall, the global financial crisis did not have a strong impact on the majority of determinants affecting capital structure decisions in the studied sector. Our results are consistent with the framework of the dynamic trade-off theory.}},
author = {{Mitreva, Eliza and Georgiev, Biser}},
language = {{eng}},
note = {{Student Paper}},
title = {{Determinants of Capital Structure: Evidence from the Global Renewable Energy Sector}},
year = {{2015}},
}